The Republican journal. [volume] (Belfast, Me.) 1829-current, 1887-01-20
The State Treasurer's Report.

The report of +. c. Burlegh. State treasur-
err, for the year ending Dec. 81, 1856. shows:
Total receipts during the wear. 81. 363, SCI;
total expenditures, not including cash bal
ance, Dee. 81, Sl.245015; cash balance
Dee. 81, &3lS.s5l; sinking fund, par value.
S2.ll0.3o0; increase in value of seeuri-
ties over 1885, S150,ll2; market value of
sinking fund securities, S2.3351. $50; nominal
bonded debt, S5.151 900; net bonded debt, s.
i99.349: reduction of debt. S209.ll2. This is Il
very gratifying exhibit. and an examination of
the forthcoming report. iii which the financial
affairs of the state are set forth iii detail. but
| in manner readily understood by every one.
will show that Treasurer Burleish has more
than net the expectations Of his friends and
that his reelection for another term is con-
tinuance of the right mai III the right place.
| The Treasurer was authorized by the last
| Legislature to procure temporary loan Of
100000, but reports that notwithstanding the
reduced rate Of taxation he was able to meet
all demands upon The treasury from the cur
rent receipts of the office. This result is due
to .udicious management and prompt collec-
| tons.
| The Traa>urel'> estimates of the receipts
and expenditures for the year l>sl are based
| upon the present law for taxation. and are as
| follows:
Receipts. ..........--..-...-. 30 lI> 90
Expenditures .-....-...... l,2ii,71o 50
| Which would leave Il Balance in favor
OF tfe state OIL. ...-...'..-.-...... S2o>,a' 10
| This balance would lie reduced by any al
preparations, not at present authorized Joy law,
which may be made 10y the legislature. GOV.
| Bodwell has recommended the reduction Of
the state tax i'll the sum of @236 600. OF about
81 per cent.
The suggestions Of the Treasurer with regard
to the public debt We quote III fun:
According TO existing law. ] have included.
| III the estimate of appropriations to be made by
| the incoming legislature. the sum of ss0.419.91
Tor the sinking fund and have also included in
the interest to be paid on the public debt the
amount due ON the - ,lG1 90 of State bonds
| held III the sinking fund which interest for the
year 1881 will amount to the sum Of St9,G3o.G0.
! II will remain for the wisdom Of the legislature
10 determine what steps shall be taken for The
relui'ling of that part of the public debt due in
june and October, 1889, which Will remain az
ter the sinking fund shall be applied to the re-
| e!uction of the debt
In my Judgment the sinking fund has been
carried rs far As the Obligation of the act Of
1865 under which it was established. requires.
The rapid rise of all the securities in which the
| fund could he invested. has. to Il cuas erable
extent. reduced the profit which was expected
from its creation and accretion. and Vet Ii has
served the most useful end 10 VI hrh il was
| originally dedicated III eNttiny the credit OF
the state to the first rank.
If the legislature shall now make prov is0n
for refundn@ the amount of debt which Will
remain in 1889 which will be less than three
millions i'll all, il might he wise to omit further
taxation III any form on account Of the debt
| The bonds can be refunded at much lower
| rate of interest and the burden upon the tax
| payers materially iightrned. The immediate
effect of this course will be a large reduction
Of taxation TO be followed by another reduce
| tion III the near future. In rcfun,iing the debt
al a low rate of interest. the bonds would per
| haps never rise to Il high premium. 80 that Il
| sinking fund established for their ultimate re-
delnption could be most safely. and in Tie end
| perhaps most probably. invested III the bonds
! themselves.
The ultimate advantage ana utility of Il Sink
| M Fund are however. ~omcW bat questioned
| by a large class of skilled nancier>. the prin-
cipa objection being the impractcahiIity of so
conducting the operations of the fund rs to
| gain Il sufficient profit to Justify its establish
m' nj with il attendant risk of loss. 1t mti>l
| however. he admitted that the Sinking Fund ut
lStN. though somewhat disappointing calcula-
lions. has proved highly advantageous to the
credit OF The state, and 10 the liquidation of
our debt
If tine establishment of another Sinking Funa
should not meet the views Of the Legislature
| II might be found advantageous to fund the
debt 50 That il should be made payable in equal
parts for forty consecutive wears. which. e>li-
mating the debt III lSS3 to be -. so 900, would
he $4,000 each year.
In this way the interest for the first year, at
three per cent. would be $4,000. second year
81 800, third year 919.S0o. fourth year S1..,0o.
ahd 50 on i'll the same proportion, thus reduc-
in@ The interest year by wear, and rapidly
| decreasing the financial burden.
II ii We're desirable 10 reduce the annual
| payment. the debt might be divided into smaller
yearly ilistallment> for a longer period. Wise
legislation ii this time viii leave but slight
burden il the future upon the tax payers from
| the public debt.
1t is not within my official province to reronl-
mend specific measures. but ! venture to >ug-
gc>t that it may prove highly advantageous to
the State Treasury to have a rcfundiny bill
| passed at the comm" session. which. besides
fixing the rate of interest and the tenor Of The
bonds. shall confer upon the Treasurer the
right, at the earliest practicable day. to e:
change new bonds for the Old. or redeem the
OLD III cash on such terms a. may prove advali-
tageou> to the state.
If the passage Of the refunding bill should
| he Postponed until after the conyeuin" of the
legislature of 1889. the State might lose the
advantage of exchange at par of the new
bonds for the old during the last year they are
outstanding.
The Treasures objections to the establish
mcnt of another sinking fund are shared by
most tinanciers, and there are other objections
equally strong. Nor docs COY. Bodwcll'S plan
for three per cent. thirty-ycar bonds. with Il
sinking fund of one per cent. find much accept
anre. of the various plans. that providing for
the payment of the debt in equal parts for forty
| consecutive Years meets with the most favor
| With the present rate of taxation the yearly
amount called for under this plan would not be
appreciably felt, and each year there would be
a reduction in principal aud interest. The pav-
mcnt of the debt, a Legacy of the war. would
| he extended over Il sufficiently long time to
| equaize the burden; and if eXigeneie> should
arise whereby the State might have TO again
use lis credit this cncllmbrance would he re-
moved. The Treasurer calls the careful at
tention of the legislature TO this matter. which
should of course be acted upon without unnec-
e>>ary delay. His suggestions with regard to
the investment of sinking fund Accommodations
are also important.